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Tesco chairman swoops on retailer's distressed shares

Sir Richard Broadbent, Tesco’s new chairman, took advantage of its share price slump to buy his first purchase of the supermarket's stock since joining the board.

 
Tesco chairman swoops on retailer's distressed shares

Sir Richard Broadbent, Tesco’s non-executive chairman, has splashed out nearly £100,000 on the retailer’s battered shares.

This is Broadbent’s first purchase of shares since becoming chairman in November, replacing David Reid. Broadbent joined Tesco in July after a career at the Treasury and serving on the boards of Barclays and Schroders. Before joining Tesco he bought nearly 24,000 shares in the group last May.

In a stock exchange announcement Tesco said Broadbent had bought 30,149 shares at just under 330p yesterday as the stock slumped 16% to a 33-month low following the supermarket group’s shock profits warning.

The news of Broadbent’s purchase came as Tesco (TSCO.L) shares fell further today, closing 2% down at 324.8p as analysts slashed their ratings and target prices on the stock.

There has been a flurry of director dealings at Tesco in recent months, most of them sales. Last week Bob Robbins, the recently appointed chief operating officer for the UK sold 50,000 shares at 404.5p.

A company spokesman said Robbins had not been involved in the decisions around the trading statement and that the transaction had not occurred during a closed period.

7 comments so far. Why not have your say?

Pat Murphy

Jan 13, 2012 at 17:52

There has been a flurry of director dealings at Tesco in recent months, most of them sales. Last week Bob Robbins, the recently appointed chief operating officer for the UK sold 50,000 shares at 404.5p.

A company spokesman said Robbins had not been involved in the decisions around the trading statement and that the transaction had not occurred during a closed period.

And of course he had no idea at any stage that Tesco's fortunes were on the wane...after all he was only the COO and what do they know!!

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Alasdair Lawrance

Jan 13, 2012 at 18:23

It's well known that 'insider dealing' is a most serious criminal offence, and it's inconceivable that Tesco directors would do such a thing, if that's what you're driving at. The FSA, the regulator, would be very tough on such a thing, as would the boys in blue, you can be assured of that.

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banjofred

Jan 13, 2012 at 18:33

er... but he sold them right??

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H Simmons

Jan 13, 2012 at 19:03

Hmm... he sold some at a value of £200,000... You are assuming that he sold ALL his stake based on insider knowledge. Firstly he is allowed to sell when he chooses. Secondly this may be only a small percentage of his stake and Finally, I don't see any reciprocal comment about Broadbent's acquisition.

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BET

Jan 13, 2012 at 19:54

He sold off a mere £200,000. His entire holding is worth around £4million. Not exactly indicative of someone thinking their company is going down the plughole.

People are practically giving these shares away - carry on giving, and I'll keep on buying!

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H Simmons

Jan 13, 2012 at 20:21

Aha, thank you for qualifying his holding at £4m. I had a feeling it was substantial.

Let's be honest, the share fall is a knee jerk reaction to a fall in xmas sales. So for the first time Tesco has lost out to its competitors. Last time this happened Tesco engaged in a price war with Sainsbury's etc. I think it was called the Price Tick!

Anyway, Tesco has so much customer profiling they will come up with some form of marketing campaign and recover. My gut feel is consider buying if you like the sector because they will come back fighting.

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Dennis .

Jan 14, 2012 at 17:50

Discussion of the radio this morning highlighted the fact that the drop in share price is not about the Xmas numbers but about the future profit warning from the board. I bought some at 324p but now I'm not so sure.

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